Brussels, 29/02/2012 (Agence Europe) - The dispute at the WTO between the EU and the United States over subsidies granted to their respective aircraft companies, Airbus and Boeing, has now entered a new stage, since the WTO Appellate Body issued its ruling to the parties on Wednesday 29 February further to the complaint filed by the EU.
In March 2011, the WTO had considered certain subsidies granted by the US to its aircraft manufacturer Boeing as illegal. The EU had filed a complaint against the subsidies in 2005 (DS 353). The EU found the ruling too lenient given that the amount incriminated by the WTO against Boeing was €5.5 billion for the period 1989-2006, compared to the trade prejudice evaluated by Airbus at €45 billion. The European Commission therefore appealed that decision in July 2010. Wednesday's report remains confidential and will be published at a later date once the parties concerned have submitted their observations. “Today's ruling, when it is made public, will provide us with a clear picture of where the two parties stand in the aircraft disputes”, explained John Clancy, the spokesman for Trade Commissioner Karel De Gucht, in a press release published on Wednesday. From the EU's point of view, “only negotiations at the highest political level can lead to a real solution”, he stressed, adding: “We hope that today's report provides momentum in that direction. The real challenge remains to find a mutually acceptable approach to maintain a healthy and viable aircraft industry producing safe and more environmentally friendly aircraft”.
The EU, which, on 1 December 2011, presented its proposal for coming into line with the May 2011 verdict of the Appellate Body (after a first, more severe ruling in June 2010) in order to put an end to subsidies to Airbus, which had been denounced by the United States in its 2004 complaint (DS 316), expects a great deal from the final ruling on its counter complaint against support to Boeing. This may compel the United States to present a whole series of measures for compliance with the ruling, at least equivalent to those of the EU. (EH/transl.jl)